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EQS-News / 21/03/2017 / 18:13 UTC+8
*(For Immediate Release)*
*TCL Multimedia Announces 2016 Annual Results*
** * * * * *
Overall Gross Profit Margin Rose to 17.4% with Continuous Increase in
High-end Products Proportion*
*LCD TV Sales Volume and Gross Profit Margin in Overseas Markets
Increased by 30.2% and 2.5 Percentage Points Respectively*
(21 March 2017, Hong Kong) - *TCL Multimedia Technology Holdings Limited
*("TCL Multimedia" or "the Group", HKSE stock code: 01070) today announced
its audited consolidated annual results for the year ended 31 December 2016.
*Business Review*
The Group continuously optimised its product mix to boost the proportion in
sales volume of high-end products such as quantum dot, curved, 4K and large
screen TVs, etc.. The Group also enhanced operational efficiency and
strengthened cost control. Various measures for reducing costs have yielded
results and caused the non-panel costs to decrease as well. In the overseas
markets, the Group has made significant breakthroughs and improvements in
sales volume and earnings. Besides, the foreign exchange gains and losses
were under control due to the relatively stable exchange rate in 2016 when
compared with 2015, resulting in an improvement in operating results.
In 2016, the Group achieved a turnover of HK$33.36 billion, dropped by 1.9%
year-on-year. Gross profit increased by 1.1% year-on-year to HK$5.82
billion, and gross profit margin rose from 16.9% of the same period of last
year to 17.4%. Operating profit was HK$300 million, and net profit after tax
was HK$180 million. Profit attributable to owners of the parent amounted to
HK$180 million. Basic earnings per share was HK11.8 cents.
In the fourth quarter, the Group's turnover was HK$9.69 billion,
representing an increase of 1.2% year-on-year. Gross profit decreased by
12.7% when compared with the same period of last year to HK$1.77 billion and
gross profit margin declined by 2.9 percentage points in the same period of
last year to 18.2%. Operating profit amounted to HK$47.36 million, and net
profit after tax was HK$39.79 million. Profit attributable to owners of the
parent amounted to HK$35.88 million. Basic earnings per share was HK2.17
cents.
On 5 December, 2016, the Group was included in the eligible shares list of
the Southbound Hong Kong Trading Link under Shenzhen-Hong Kong Stock Connect
("Shenzhen-Hong Kong Stock Connect"). The Shenzhen-Hong Kong Stock Connect
will offer alternative investing channels in both the PRC and Hong Kong
stock markets, to enliven the two stock markets by boosting trade volume and
increasing the valuations of Hong Kong stocks. The Group expects to attract
more Chinese and overseas investors through the programme.
*The PRC Market*
In 2016, the Group's LCD TV sales volume increased by 1.8% year-on-year to
9.41 million sets. Affected by prices of major raw materials, average market
selling price and 6.1% year-on-year depreciation in the average exchange
rate of Renminbi against Hong Kong dollars in 2016, the average selling
price of LCD TVs decreased by 13.8% year-on-year while turnover decreased by
12.2% year-on-year to HK$19.17 billion, imposing pressure on earnings.
Despite this, the Group has proactively optimised its product mix and
further strengthened cost control, which resulted in a significant
improvement in non-panel cost reduction and a year-on-year increase in gross
profit margin of LCD TVs from 20.6% to 20.9%.
With continued product mix enhancements, the proportion of mid-to-high-end
products has been steadily increasing in 2016 (Data below excluded ODM
business).
- Smart TV sales volume increased by 10.1% year-on-year to 5.15 million
sets, which accounted for 66.1% of the LCD TV sales volume, rising from
53.7% in the same period of last year.
- 4K TV sales volume increased by 63.3% year-on-year to 2.83 million sets,
which accounted for 36.3% of the LCD TV sales volume, rising from 19.9% in
the same period of last year.
- Market share of curved TVs was 30.4% in 2016, maintaining No.1 position
among the domestic brands in the market (Source: CMM). The proportion of
accumulated curved TV sales volume to the Group's LCD TV sales volume in the
PRC market rose from 2.5% in the same period of last year to 10.9%.
- Proportion of the sales volume of products with screen size of 55 inches
or above increased from 16.6% of LCD TV sales volume in 2015 to 29.0% in
2016.
- The average size of TVs sold increased from 41.5 inches in the same period
of last year to 44.3 inches.
*Overseas Markets*
Product mix (excluding ODM business) was enhanced through the CBUS (curved,
large screen, 4K, smart TVs) strategy:
- The proportion of curved TV sales volume increased from 0.2% in 2015 to
1.9% in 2016.
- The proportion of TV with screen size of 55 inches and above sales volume
increased from 8.2% in 2015 to 14.8% in 2016.
- The proportion of 4K TV sales volume increased from 2.6% in 2015 to 14.8%
in 2016.
- The proportion of smart TV sales volume increased from 33.8% in 2015 to
58.2% in 2016.
Contributed by the continued sales growth in the North American market and
the emerging markets, the Group's LCD TV sales volume in 2016 increased by
30.2% year-on-year to 10.54 million sets, turnover was up by 16.2%
year-on-year to HK$13.92 billion and gross profit margin rose to 12.5% from
10.0% in the same period of last year.
Performance in the overseas markets in 2016:
- In the North American market, LCD TV sales volume surged by 71.8%
year-on-year, with its ranking of market share, in terms of sales volume,
climbing from No.9 in the same period of last year to No.6 in 2016 (Source:
NPD).
- LCD TV sales volume in the emerging markets rose by 44.3% year-on-year, of
which market shares, in terms of sales volume for the year 2016 in Thailand,
remained No.3. Ranking in Vietnam has increased from No.5 in the same period
of last year to No.4 in 2016, while ranking in Australia was No.6 (Source:
GfK).
- Due to fluctuations in exchange rates and increased panel prices, LCD TV
sales volume in the European market slightly dropped by 0.9% year-on-year.
In terms of sales volume, the Group ranked No.3 in France in 2016, rising
from No.4 in the same period of last year (Source: GfK).
- LCD TV sales volume of the strategic ODM business was up by 21.3% when
compared with the same period of last year.
*Internet Business*
As of December 2016, the accumulated number of TCL activated smart TV users
totalled 17,289,434, the daily average number of active users in December
2016 was 7,473,240 (Source: Huan).
- Video-on-demand business totalled 17.40 million users, increasing by 12.4%
when compared with the first three quarters of 2016;
- Lifestyle business totalled 4.89 million users, increasing by 51.8% when
compared with the first three quarters of 2016;
- Applications business totalled 15.40 million users, increasing by 32.0%
when compared with the first three quarters of 2016;
- Spending time of users reached 4.7 hours, representing an continuous
enhancement in user loyalty.
*Outlook*
*Mr. BO Lianming, Chief Executive Officer of TCL Multimedia* said, "Looking
forward, we will set 'efficiency is basis, structure is core, profit is
goal' as our overall operation strategy for 2017 and continue to strengthen
the establishment of core competencies of the enterprise and forge core
competitiveness. Meanwhile, we will focus on 'two-up and two-down' as
operating strategy to increase the proportion of products with high gross
profit and low cost channels while decreasing system costs and asset
turnover days. Furthermore, we will continue to foster the establishment of
four core competitiveness including product technology capabilities,
industry capabilities, brand and channel capabilities as well as internet
application and service capabilities, and actively build a comprehensive
ecosystem for smart TVs to provide users with an exquisite experience with
smart products and services, thereby delivering greater enterprise value and
returns to shareholders."
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Document title: 2016AR_Press Release_Eng_Final
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(END) Dow Jones Newswires
March 21, 2017 06:15 ET (10:15 GMT)
